CONCEPT OF CONSUMER BUYING BEHAVIOR:

Definition:
Consumer buying behavior is the sum total of a consumer's attitudes, preferences,
intentions and decisions regarding the consumer's behavior in the marketplace when
purchasing a product or service. The study of consumer behavior draws upon social
science disciplines of anthropology, psychology, sociology, and economics.

The Consumer Buying Decision Process:

This article is the second in a series of articles about the factor influence the
behavior of consumers.
The purchase is only the visible part of a more complex decision process created by the
consumer for each buying decision he makes. But what happens before and after this
purchase? What are the factors influencing the choice of product purchased by the
consumer?
Today, lets focus on the Consumer Buying Decision Process and the stages that lead a
shopper to purchase a new product.
Engel,Black well and Kolla have developed in 1968 a model of consumer buying decision
process in five steps: Problem/need recognition, information search, evaluation of
alternatives to meet this need, purchase decision and post-purchase behavior .

I. Need recognition / Problem recognition :

The need recognition is the first and most important step in the buying process. If there is
no need, there is no purchase. This recognition happens when there is a lag between the
consumers actual situation and the ideal and desired one.
However, not all the needs end up as a buying behavior. It requires that the lag between
the two situations is quite important. But the way (product price, ease of acquisition, etc.)
to obtain this ideal situation has to be perceived as acceptable by the consumer based
on the level of importance he attributes to the need.
For example, you have a pool and you would like someone to take care of regularly
cleaning it instead of you (ideal situation) because it annoys you to do it yourself (actual
situation). But you dont judge the way to reach this ideal situation (pay $250 / month for
a specialized company) as acceptable because its price to obtain it seems too high.
Especially compared to the relatively low level of importance you attach to it. So you wont
have a purchase behavior in this situation.
On the other hand, the ability to be able to go to your work by car in 20 minutes every
morning (ideal situation) rather than lose three hours in transit because you do not have a
car and you live in the countryside (actual situation) is something that means a lot to you.
So you will have a buying behavior to purchase a car. Even if the price is important.

In addition to a need resulting from a new element, the gap between the actual situation
and the ideal situation may be due to three cases. The current situation has not changed,
but the ideal situation has (a neighbor told you about the possibility that you did not know
to clean the pool by a specialized company). Or, the ideal situation is still the same but
its the actual situation has changed (youre tired of cleaning your pool by yourself). Or
finally, the two situations have changed.
The recognition of a need by a consumer can be caused in different ways. Different
classifications are used :

1 Internal stimuli physiological need felt by the individual as hunger or thirst)

which opposes theexternal stimuli such as exposure to anthe sight of a pretty dress
in a shop window or the mouth-watering smell of a french pain au chocolat when
passing by a bakery.

2 Classification by type of needs:

Functional need: the need is related to a feature or specific functions of the
product or happens to be the answer to a functional problem. Like a computer
with a more powerful video card to be able to play the latest video games or a
washing machine that responds to the need to have clean clothes while
avoiding having to do it by hand or go to the laundromat.
Social need: the need comes from a desire for integration and belongingness
in the social environment or for social recognition. Like buying a new
fashionable bag to look good at school or choose a luxury car to show that
you are successful in life.
Need for change: the need has its origin in a desire from the consumer to
change. This may result in the purchase of a new coat or new furniture to
change the decoration of your apartmnet.
3. The Maslows hierarchy of needs: Developed by the eponymous psychologist, this is
one the best known and widely used classifications and representations for
hierarchy
of needs. It specifies that an individual is guided by certain needs that he wants to achieve
before seeking to focus on the following ones:
1. Physiological needs
2. Safety needs
3. Need of love and belonging
4. Need of esteem (for oneself and from the others)
5. Need of self-actualization

II. Information search:

Once the need is identified, its time for the consumer to seek information about possible
solutions to the problem. He will search more or less information depending on the
complexity of the choices to be made but also his level of involvement. (Buying pasta requires

little information and involves fewer consumers than buying a car.)

Then the consumer will seek to make his opinion to guide his choice and his decision-making
process with:
Internal information: this information is already present in the consumers memory.
It comes from previous experiences he had with a product or brand and the opinion he
may have of the brand.
Internal information is sufficient for the purchasing of everyday products that the consumer
knows including Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods
(CPG). But when it comes to a major purchase with a level of uncertainty or stronger
involvement and the consumer does not have enough information, he must turns to another
source:
External information: This is information on a product or brand received from and
obtained by friends or family, by reviews from other consumers or from the press. Not
to mention, of course, official business sources such as an advertising or a sellers
speech.
During his decision-making process and his Consumer Buying Decision Process, the
consumer will pay more attention to his internal information and the information from
friends, family or other consumers. It will be judged more objective than these from an
advertising, a sellers speech or a commercial brochure of the product.

III. Alternative evaluation:

Once the information collected, the consumer will be able to evaluate the different
alternatives that offer to him, evaluate the most suitable to his needs and choose the one he
think its best for him.
In order to do so, he will evaluate their attributes on two aspects. The objective
characteristics (such as the features and functionality of the product) but also subjective
(perception and perceived value of the brand by the consumer or its reputation).
Each consumer does not attribute the same importance to each attribute for his decision and
his Consumer Buying Decision Process. And it varies from one shopper to another. Mr. Smith
may prefer a product for the reputation of the brand X rather than a little more powerful but
less known product. While Mrs. Johnson has a very bad perception of that same brand.
The consumer will then use the information previously collected and his perception or image
of a brand to establish a set of evaluation criteria, desirable or wanted features, classify the
different products available and evaluate which alternative has the most chance to satisfy
him.

The process will then lead to what is called evoked set. The evoked set (aka consideration
set) is the set of brands or products with a probability of being purchased by the consumer
(because he has a good image of it or the information collected is positive).
On the other hand, inept set is the set of brands or products that have no chance of being
purchased by the shopper (because he has a negative perception or has had a negative
buying experience with the product in the past). While inert set is the set of brands or
products for which the consumer has no specific opinion.
The higher the level of involvement of the consumer and the importance of the purchase are
stronger, the higher the number of solutions the consumer will consider will be important.
On the opposite, the number of considered solutions will be nmuch smaller for an everyday
product or a regular purchase.

IV. Purchase decision:

Now that the consumer has evaluated the different solutions and products available for
respond to his need, he will be able to choose the product or brand that seems most
appropriate to his needs. Then proceed to the actual purchase itself.
His decision will depend on the information and the selection made in the previous step
based on the perceived value, products features and capabilities that are important to him.
But his Consumer Buying Decision Process and his decision process may also depend or be
affected by such things as the quality of his shopping experience or of the store (or online
shopping website), the availability of a promotion, a return policy or good terms and
conditions for the sale.
For example, a consumer committed to the idea of,buying a stereo of a well-known brand
could change his decision if he has an unpleasant experience with sellers in the store. While a
promotion in a supermarket for a yogurt brand could tip the scale for this brand in the
consumers mind who was hesitating between three brands of his evoked set.

V. Post-purchase behavior:
Once the product is purchased and used, the consumer will evaluate the adequacy with his
original needs (those who caused the buying behavior). And whether he has made the right
choice in buying this product or not. He will feel either a sense of satisfaction for the product
(and the choice). Or, on the contrary, a disappointment if the product has fallen far short of
expectations.
An opinion that will influence his future decisions and buying behavior. If the product has
brought satisfaction to the consumer, he will then minimize stages of information search and
alternative evaluation for his next purchases in order to buy the same brand. Which will
produce customer loyalty.
On the other hand, if the experience with the product was average or disappointing, the
consumer is going to repeat the 5 stages of the Consumer Buying Decision Process during
his next purchase but by excluding the brand from his evoked set.

The post-purchase evaluation may have important consequences for a brand. A satisfied
customer is very likely to become a loyal and regular customer. Especially for everyday
purchases with low level of involvement such as Fast-Moving Consumer Goods (FMCG) or
Consumer Packaged Goods (CPG). A loyalty which is a major source of revenue for the brand
when you combine all purchases made by customer throughout his entire life (called lifetime
customer value). The Holy Grail that all brands in the industry are trying to achieve.
Positive or negative, consumers will also be able to share their opinion on the brand.
Whether in their family or by word-of-mouth. Or on a much broader scale now with social
networks or on consumer product review websites. A tendency not to be overlooked
because now with the Internet, an unhappy customer can have a strong power to harm for a
brand.
Thats why thats important for companies to have awareness of that matter. In addition to
optimizing the customer experience, a guarantee (for example, for a washing machine), an
efficient customer service and a specific call center are some of the assets that can be
developed to improve post-purchase behavior if there is any trouble with the product.